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IPSASB Meeting (September 2019) Agenda Item 1.5 IPSAS–IFRS Alignment1 Dashboard2

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IPSASB Meeting (September 2019) Agenda Item 1.5 IPSAS–IFRS Alignment1 Dashboard2 IPSASB Meeting (September 2019) Agenda Item 1.5 1 2 IPSAS–IFRS Alignment Dashboard CONTENTS Table 1 – IPSAS/RPG and Equivalent IFRS/PS—Summary ............................................................................................................................................................... 2 Table 2 – IFRS/PS with no Equivalent IPSAS/RPG ............................................................................................................................................................................ 3 Table 3 – IPSAS and Equivalent IFRS—Detail .................................................................................................................................................................................... 4 Table 4 – RPG and Equivalent PS—Detail ........................................................................................................................................................................................ 17 Table 5 – Summary of IASB Work Plan as at May 28, 2019 ............................................................................................................................................................. 18 ALIGNMENT STATUS LEGEND Degree updated for relevant IFRS changes Degree of public sector specificity Step in Process for Degree of Public Sector Specificity Reviewing and Modifying Degree Updated for Relevant IFRS Changes IASB Documents Updated IPSAS with minor public sector guidance added (public sector terminology and minor modifications) 4 Relevant IFRS changes to be considered in current project IPSAS with public sector guidance added (public sector terminology and modifications) 3 Relevant IFRS changes not yet considered without active alignment project Public sector specific IPSAS with some IFRS guidance 5 New IFRS to be considered in current project Public sector specific IPSAS N/A New IFRS not yet considered without active alignment project 1 The term ‘alignment’ refers to the formal processes the IPSASB follows to assess the applicability of IFRS and/or GFS requirements when developing pronouncements which faithfully represent the economic substance of transactions in the public sector. Through these processes the IPSASB aims to reduce unnecessary differences with these sources of guidance when they can also be applied in the public sector context. 2 Staff assessment Key: IPSAS = International Public Sector Accounting Standard; RPG = Recommended Practice Guideline; IFRS = International Financial Reporting Standard; IAS = International Accounting Standard; PS = Practice Statement Prepared by: João Fonseca (August 2019) Page 1 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019) Table 1 – IPSAS/RPG and Equivalent IFRS/PS—Summary IPSAS/RPG IFRS/PS Status IPSAS/RPG IFRS/PS Status IPSAS/RPG IFRS/PS Status 1, Presentation of Financial 36, Investments in Associates and IAS 1 20, Related Party Disclosures IAS 24 IAS 28 Statements Joint Ventures 21, Impairment of Non-Cash- 2, Cash Flow Statements IAS 7 IAS 36 37, Joint Arrangements IFRS 11 Generating Assets 3, Accounting Policies, Changes 22, Disclosure of Financial 38, Disclosure of Interests in Other in Accounting Estimates and IAS 8 Information about the General − IFRS 12 Entities Errors Government Sector 4, The Effects of Changes in 23, Revenue from Non-Exchange IAS 21 − 39, Employee Benefits IAS 19 Foreign Exchange Rates Transactions (Taxes and Transfers) 24, Presentation of Budget 5, Borrowing Costs IAS 23 − 40, Public Sector Combinations IFRS 3 Information in Financial Statements 9, Revenue from Exchange 26, Impairment of Cash-Generating IFRS 9, IAS 18 IAS 36 41, Financial Instruments Transactions Assets IFRIC 16 10, Financial Reporting in IAS 29 27, Agriculture IAS 41 42, Social Benefits − Hyperinflationary Economies 28, Financial Instruments: IAS 32, 11, Construction Contracts IAS 11 Presentation IFRIC 2 29, Financial Instruments: IAS 39, Financial Reporting under the Cash 12, Inventories IAS 2 − Recognition and Measurement IFRIC 16 Basis of Accounting 30, Financial Instruments: 13, Leases IAS 17 IFRS 7 Disclosures 14, Events after the Reporting IAS 38, RPG 1, Reporting on the Long-Term IAS 10 31, Intangible Assets − Date SIC 32 Sustainability of an Entity’s Finances PS 1 32, Service Concession IFRIC 12, SIC RPG 2, Financial Statement 16, Investment Property IAS 40 Management Arrangements: Grantor 29 Discussion and Analysis Commentary 17, Property, Plant, and 33, First-time Adoption of Accrual RPG 3, Reporting Service IAS 16 IFRS 1 − Equipment Basis IPSASs Performance Information 18, Segment Reporting IAS 14 34, Separate Financial Statements IAS 27 19, Provisions, Contingent 35, Consolidated Financial IAS 37 IFRS 10 Liabilities and Contingent Assets Statements Note: The IPSASB views the Cash Basis IPSAS as an important stepping stone on the journey to full accrual accounting rather than an end in itself. Agenda Item 1.5 Page 2 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019) Table 2 – IFRS/PS with no Equivalent IPSAS/RPG1 2 IFRS Status Comments IFRS (IAS) / PS Status Comments Entities reporting on IPSAS basis Entities reporting on IPSAS IFRS 2 Share-based Payment generally do not give share-based IAS 12 Income Taxes basis generally do not pay payment compensation. income taxes. The IPSASB will aim to consider IFRS 5 as staff and IPSASB resources IFRS 5 Non-current Assets Held for Sale and become available. IAS 20 Accounting for Government Grants and Being considered through Discontinued Operations Disclosure of Government Assistance IPSASB Revenue project. The IPSASB will consider issues in the IPSASB Measurement project. Potential connections with project on The IPSASB may consider IFRS 6 Exploration for and Evaluation of IAS 26 Accounting and Reporting by Retirement Natural Resources. Could consider IAS 26 as staff and IPSASB Mineral Resources Benefit Plans inclusion in scoping phase. resources become available. The IPSASB may consider IFRS 8 as Public sector entities IFRS 8 Operating Segments staff and IPSASB resources become IAS 33 Earnings per Share generally do not issue available. equity. Limited interest given current priority to get IFRS 13 Fair Value Measurement IPSASB Measurement project IAS 34 Interim Financial Reporting governments onto accrual- based end year reporting. The IPSASB has yet to consider this Practice Monitoring development of ongoing Practice Statement 2: Making Materiality IFRS 14 Regulatory Deferral Accounts Statement. IPSASB staff IASB project Rate-regulated Activities. Judgements issued a Questions and Answers on Materiality. IFRS 15 Revenue from Contracts with IPSASB Revenue project Customers IFRS 16 Leases IPSASB Leases project Option to use IFRS 17 directly IFRS 17 Insurance Contracts included in IPSAS 42, Social Benefits. 1 Staff assessment 2 Consequential amendments from IFRS with purple and white legend will only be considered if the IPSASB undertakes the project. Alignment Status: Being addressed in an active project. Possible project for consideration in conjunction with an active project. Not in current IPSASB work plan. Not relevant to the entities reporting on IPSAS basis. Agenda Item 1.5 Page 3 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019) Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Presentation of Financial Statements IPSAS 1 IAS 1 • IPSAS 1 requires the presentation of a statement showing all changes in Active Alignment Project (Revised (Revised net assets/equity. Consequential amendments from IFRS 13 Fair Value Measurement, IFRS December December • IPSAS 1 does not explicitly preclude the presentation of items of 15 Revenue from Contracts with Customers, and IFRS 16 Leases. 2006) 2003) revenue and expense as extraordinary items, either on the face of the Limited Scope Review of the Conceptual Framework: statement of financial performance or in the notes. October 2018 – Definition of Material (Amendments to IAS 1 and IAS 8) • IPSAS 1 uses different terminology. During the development of the Conceptual Framework the IPSASB decided not to include “other resources” and “other obligations” as elements of financial statements (see paragraphs BC5.48–BC5.56 of the Conceptual Framework). Therefore, transactions where the IASB uses the term “other comprehensive income” in IPSASB literature is presented in net assets/equity. March 2007 – Consequential amendments from Revised IAS 23 Borrowing Costs September 2007 – IAS 1 Presentation of Financial Statements – Revised New public sector specific projects prioritized for initial research and version of IAS 1 which includes the notion of comprehensive income was not scoping adopted in IPSAS 1. Presentation of Financial Statements in the Public Sector. May 2010 – Improvements to IFRSs June 2011 – Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) June 2014 – Consequential amendments from Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) December 2014 – Disclosure Initiative (Amendments to IAS 1) January 2016 – Consequential amendments from Disclosure Initiative (Amendments to IAS 7) Agenda Item 1.5 Page 4 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019) Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Cash Flow Statements IPSAS 2 IAS 7 • IPSAS 2 contains a different set of definitions. Active Alignment Project (May 2000)
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